Sharp 2007 Annual Report Download - page 57

Sharp Annual Report 2007 55
5. Short-term Borrowings and Long-term Debt
The weighted average interest rates of short-term borrowings as of
March 31, 2006 and 2007 were 1.2% and 3.4%, respectively. The
Company and its consolidated subsidiaries have had no
difficulty in renewing such loans when they have considered such
renewal advisable.
Bank loans........................................................................................................
Bankers’ acceptances payable .........................................................................
Commercial paper.............................................................................................
Current portion of long-term debt......................................................................
$ 1,016,325
308
195,427
845,530
$ 2,057,590
¥ 118,910
36
22,865
98,927
¥ 240,738
¥ 85,027
71
173,617
22,280
¥ 280,995
Long-term debt as of March 31, 2006 and 2007 consisted of the following:
0.0%—6.2% unsecured loans principally from banks, due 2006 to 2018..........
0.57% unsecured straight bonds, due 2007 .....................................................
0.62% unsecured straight bonds, due 2010 .....................................................
0.97% unsecured straight bonds, due 2012 .....................................................
0.00%
unsecured convertible bonds with subscription rights to shares, due 2013 ...
0.32%—1.18% unsecured Euroyen notes issued by
a consolidated subsidiary, due 2006 to 2013 ..................................................
6.00% mortgage loans for employees’ housing from a
government-sponsored agency, due 2006 to 2009.........................................
0.48%—1.39% payables under securitized lease receivables, due 2006 to 2013 ..
Less-Current portion included in short-term borrowings....................................
$ 908,205
427,350
256,410
170,940
1,749,086
128,376
9
288,615
3,928,991
(845,530)
$ 3,083,461
¥ 106,260
50,000
30,000
20,000
204,643
15,020
1
33,768
459,692
(98,927)
¥ 360,765
¥ 106,642
50,000
30,000
20,000
—
21,800
2
35,381
263,825
(22,280)
¥ 241,545
200720072006
Yen
(millions) U.S. Dollars (thousands)
200720072006
Yen
(millions) U.S. Dollars (thousands)
The following is a summary of the terms of conversion and redemption of the convertible bonds with subscription rights to shares:
0.00% Convertible bonds with subscription rights to shares, due 2013 ..................................................................... ¥ 2,531.00
Conversion price
Short-term borrowings including current portion of long-term debt as of March 31, 2006 and 2007 consisted of the following:
The conversion price is subject to adjustment for certain
subsequent events such as the issue of common stock at less than
market value and stock splits.
If all convertible bonds with subscription rights to shares were
converted as of March 31, 2007, 79,020 thousand shares of com-
mon stock would be issuable.
As is customary in Japan, substantially all of the bank borrowings
are subject to general agreements with each bank which provide,
among other things, that security and guarantees for present and
future indebtedness will be given upon request of the bank, and that
any collateral so furnished will be applicable to all indebtedness to
that bank. To date, the Company has not received such requests
from its banks. In addition, the agreements provide that the bank
has the right to offset cash deposited against any short-term or long-
term debt that becomes due, and in case of default and certain other
specified events, against all other debts payable to the bank.